[Federal Register Volume 60, Number 146 (Monday, July 31, 1995)]
[Notices]
[Pages 39037-39040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18702]



-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36013; File No. SR-PHILADEP-95-04]


Self-Regulatory Organizations; Philadelphia Depository Trust 
Company; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Fees and Charges

July 24, 1995.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act''), notice is hereby given that on July 10, 1995, the 
Philadelphia Depository Trust Company (``Philadep'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I, II, and III below, which items have 
been prepared primarily by Philadep. The Commission is publishing this 
notice to solicit comments from interested persons on the proposed rule 
change.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Philadep is filing the proposed rule change in order to revise, 
consolidate, and restate its published schedule of fees and charges 
(attached as Exhibit 1).

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Philadep included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. Philadep has prepared summaries, set forth in sections 
(A), (B), and (C) below, of the most significant aspects of such 
statements.\2\

    \2\ The Commission has modified the text of the summaries 
prepared by Philadep.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to revise, consolidate, 
and restate Philadep's published schedule of fees and charges. It has 
been nearly four years since Philadep filed a comprehensive fee 
schedule. Philadep has adjusted the graduated Legal Deposit Fees to 
reflect a new tier of volume related discounts which provides that 
Philadep participants with monthly legal deposits of 2,501 to 3,000 
will be charged a flat rate of $3.50 per deposit and that Philadep 
participants having monthly legal deposits of 3,001 or more will be 
charged at flat rate of $2.75 per deposit.\3\ Philadep believes these 
fees will be highly competitive and will encourage current and 
prospective Philadep participants to increase their use of this 
service. Philadep also has consolidated and restated all other existing 
fees and charges and hereafter annually will file a comprehensive 
schedule of fees and charges.

    \3\ Previously, Philadep participants were charged $3.50 for 
every deposit over 2,500.
---------------------------------------------------------------------------

    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder because 
it provides for the equitable allocation of dues, fees, and other 
charges among Philadep's participants.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    Philadep does not perceive any burdens on competition as a result 
of the proposed rule change.

[[Page 39038]]


(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants or Others

    A Philadep participant bulletin will notify participants of the fee 
schedule changes and advise them to whom they may direct questions upon 
receipt of the new fee schedule.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) \4\ of the Act and pursuant to Rule 19b-4(e)(2) \5\ 
promulgated thereunder because the proposal establishes or changes a 
due, fee, or other charge imposed by Philadep. At any time within sixty 
days of the filing of such rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.

    \4\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \5\ 17 CFR 240.19b-4(e)(2) (1994).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street NW., Washington, D.C. 20549. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street NW., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal office of Philadep. All 
submissions should refer to File No. SR-PHILADEP-95-04 and should be 
submitted by August 21, 1995.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\6\

    \6\ 17 CFR 200.30-3(a)(12) (1994).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
Exhibit 1

SR-Philadep-95-04

                   Philadelphia Depository Trust Company Consolidated Restatement of Fees \1\                   
                                                                                                                
                                          Service                                                    Fee        
1. Account fees:                                                                                                
    a. General Maintenance Fee............................................................  $360.00 per month   
                                                                                             with account       
                                                                                             activity.          
                                                                                            $150.00 per month   
                                                                                             for accounts with  
                                                                                             less than $10.00 of
                                                                                             depository         
                                                                                             activity.          
    b. Pledge Bank Fee....................................................................  $100.00 per month.  
    c. Manual Interface Fee...............................................................  $150.00 per month in
                                                                                             addition to the    
                                                                                             general maintenance
                                                                                             fee.               
    d. Bearer Municipal Bonds.............................................................  $200.00 per month in
                                                                                             addition to the    
                                                                                             general maintenance
                                                                                             fee.               
                                                                                            $260.00 per month   
                                                                                             for bearer bond    
                                                                                             account only.      
2. Custody fees:                                                                                                
    a. Registered Securities..............................................................  Base fee of $0.50   
                                                                                             per issue, per     
                                                                                             month.             
                                                                                            Plus for each 100   
                                                                                             shares or $4,000.00
                                                                                             in bonds:          
                                                                                            0-1 Million Shares--
                                                                                             $0.01.             
                                                                                            1-5 Million Shares--
                                                                                             $0.005.            
                                                                                            Over 5 Million      
                                                                                             Shares--$0.0025.   
                                                                                            Additional $0.50 fee
                                                                                             per issue if       
                                                                                             Philadep eligible  
                                                                                             only, per month.   
    b. Bearer Municipal Bonds.............................................................  Base fee of $1.45   
                                                                                             per issue, per     
                                                                                             month.             
                                                                                            Plus for each $1,000
                                                                                             of par value:      
                                                                                            $0-$0.5 Billion--   
                                                                                             $0.010.            
                                                                                            $0.5-$1.0 Billion-- 
                                                                                             $0.007.            
                                                                                            More than $1        
                                                                                             Billion--$0.005.   
3. Deposit fees:                                                                                                
    a. Registered Securities..............................................................  $1.60 per deposit*. 
    b. Bearer Municipal Bonds.............................................................  $8.00 per deposit.  
4. Deposit reject fees:                                                                                         
    a. Registered Securities..............................................................  No charge if total  
                                                                                             deposit rejects are
                                                                                             less than 1% of    
                                                                                             total deposits for 
                                                                                             the month. Charge  
                                                                                             of $10.00 per      
                                                                                             reject if more than
                                                                                             1%.                
    b. Bearer Municipal Bonds.............................................................  $10.00 per reject.  
5. Legal deposits.........................................................................  Processing fees are 
                                                                                             based on monthly   
                                                                                             deposit volume:    


                                                                                                                                                        
                                                                                                     Volume level                   Per deposit         
                                                                                            0-100........................  $8.50.                       
                                                                                            101-500......................  $6.00.                       
                                                                                            501-1,000....................  $5.50.                       
                                                                                            1001-1,700...................  $5.00.                       
                                                                                            1701-2,500...................  $4.50.                       
                                                                                            [2,501 and over..............  $3.50].                      
                                                                                            2,501-3,000..................  $3.50 flat fee for all legal 
                                                                                                                            deposits.                   
                                                                                            3,001 and over...............  $2.75 flat fee for all legal 
                                                                                                                            deposits.                   


                                                                                                                                                        

[[Page 39039]]
                                                                                            No charge for       
                                                                                             deposit rejects.   
                                                                                             Transfer agent     
                                                                                             charges will be    
                                                                                             passed through to  
                                                                                             the participant on 
                                                                                             an item for item   
                                                                                             basis.             
6. Withdrawals:                                                                                                 
    a. Registered Securities..............................................................  $2.60 per manual    
                                                                                             (paper) transfer.* 
                                                                                            $1.65 per computer  
                                                                                             to computer        
                                                                                             transfer.*         
                                                                                            $2.60 per terminal  
                                                                                             originated         
                                                                                             transfer.*         
    b. By Certificate.....................................................................  $17.95 per urgent   
                                                                                             certificate        
                                                                                             withdrawal (same-  
                                                                                             day or next-day).* 
7. Customer name mailing:                                                                                       
    a. Full Service.......................................................................  $0.65 per transfer, 
                                                                                             plus appropriate   
                                                                                             transfer withdrawal
                                                                                             charge (fee does   
                                                                                             not include postage
                                                                                             and delivery       
                                                                                             valuation charges) 
    b. Interdepository....................................................................  $0.75 per transfer, 
                                                                                             for securities     
                                                                                             delivered          
                                                                                             interdepository    
                                                                                             plus appropriate   
                                                                                             transfer withdrawal
                                                                                             charge (fee does   
                                                                                             not include postage
                                                                                             and delivery       
                                                                                             valuation charges) 
8. Certificate fees.......................................................................  $5.75 deposits.     
                                                                                            $7.50 transfers.    
9. Accommodation transfers and ironclads..................................................  $5.00 per request,  
                                                                                             plus applicable    
                                                                                             transfer agent     
                                                                                             fees.              
10. MDO movements:                                                                                              
    a. Automated Bookentry Delivery/Receive...............................................  $0.75 per movement. 
    b. Manual Bookentry Delivery/Receive..................................................  $1.50 per movement. 
    c. Automatic Bookentry Interdepository Deliveries.....................................  $0.50 per CUSIP     
                                                                                             (daily deliveries).
                                                                                            $0.55 per CUSIP     
                                                                                             (weekly            
                                                                                             deliveries).       
                                                                                            $0.60 per CUSIP (bi-
                                                                                             weekly deliveries).
                                                                                            $0.65 per CUSIP     
                                                                                             (monthly           
                                                                                             deliveries).       
    c. Bearer Municipal Bonds Automated or Manual.........................................  $0.94 per movement. 
11. CNS/PHILADEP Movements................................................................  $0.20 per movement. 
12. Underwritings.........................................................................  $400.00 plus $3.00  
                                                                                             per million (plus  
                                                                                             applicable activity
                                                                                             charges).          
13. Pledge fees:                                                                                                
    a. Bank loan pledge or release........................................................  $0.35 each per line 
                                                                                             item to broker and 
                                                                                             bank.              
    b. OCC pledge or release..............................................................  $0.35 per line item.
    c. SCCP margin pledge (no charge for release).........................................  $0.10 per line item.
14. Dividend and interest payments........................................................  $1.50 per cash line 
                                                                                             item.              
                                                                                            $10.00 per stock    
                                                                                             dividend payment.  
15. Reorganization fees:                                                                                        
    a. Mandatory Exchanges................................................................  $23.00 per position.
    b. Voluntary Offers...................................................................  $30.00 per          
                                                                                             instruction        
                                                                                             received before cut-
                                                                                             off.               
                                                                                            $50.00 per          
                                                                                             instruction        
                                                                                             received after cut-
                                                                                             off, with          
                                                                                             authorization.     
    c. Redemptions: Stocks, Corporate Bonds, Registered Municipal Bonds, others...........  $25.00 per position.
    d. Post Corporate Actions.............................................................  $17.50 per item     
                                                                                             (plus costs).      
16. Combined legal deposits and letters of correction (ironclads).........................  $6.25 per item (one 
                                                                                             legal deposit and  
                                                                                             one letter of      
                                                                                             correction is      
                                                                                             defined as one     
                                                                                             item).             
17. Research fees:                                                                                              
    a. Per photocopy of records...........................................................  $4.00.              
    b. Per microfiche copy................................................................  $4.00.              
    c. Items less than 90 days old........................................................  No charge.          
    d. Items 1 year old or less...........................................................  $15.00 per hour.    
    e. Items over 1 year old..............................................................  $15.00 per hour,    
                                                                                             $25.00 minimum,    
                                                                                             plus archive       
                                                                                             retrieval costs.   
18. Reports on microfiche.................................................................  $1.25 per page.     
19. Eligibility book......................................................................  $8.00 per book.     
20. Stock loan program--Interest charge to lender.........................................  Percentage of bank  
                                                                                             broker call rate.  
21. National institutional delivery system (NIDS):                                                              
    a. Confirms...........................................................................  $0.40 per confirm.  
    b. For each unaffirmed trade reported.................................................  $0.09 to broker.    
    c. For each eligible trade reported...................................................  $0.09 to broker and 
                                                                                             clearing agent.    
    d. For each ineligible trade reported.................................................  $0.09 to broker and 
                                                                                             clearing agent.    
    e. Automated Settlement...............................................................  $0.26 per receive   
                                                                                             and per delivery to
                                                                                             broker and clearing
                                                                                             agent.             
22. Philadep discounts--Participants may select one of the following discount plans (the                        
 greater discount will apply):                                                                                  
     a. Volume............................................................................  5% off Philadep     
                                                                                             charges for        
                                                                                             participants with  
                                                                                             10,001 to 15,000   
                                                                                             trades per month.  
                                                                                            An additional 5% off
                                                                                             Philadep charges   
                                                                                             for participants   
                                                                                             with 15,001 to     
                                                                                             30,000 trades per  
                                                                                             month.             
                                                                                            An additional 5% off
                                                                                             Philadep charges   
                                                                                             for participants   
                                                                                             with 30,001 to     
                                                                                             45,00 trades per   
                                                                                             month.             
                                                                                            An additional 5% off
                                                                                             Philadep charges   
                                                                                             for participants   
                                                                                             with 45,001 or more
                                                                                             trades per month.  
    b. Automated Deposit Reporting Service (ADRS).........................................  $0.40 per deposit   
                                                                                             for participants   
                                                                                             utilizing Philadep 
                                                                                             ADRS and CNM       
                                                                                             services.          
23. Computer Transmission/tapes:                                                                                
    a. Eligibility Files:                                                                                       
        1. Daily Update...................................................................  $50.00 per month.   
        2. Weekly Full File...............................................................  $200.00 per month.  
        3. Monthly or on Request..........................................................  $75.00 each request.
    b. Bookkeeping Positions:                                                                                   
        1. Daily..........................................................................  $150.00 per month.  
        2. Weekly.........................................................................  $100.00 per month.  

[[Page 39040]]
                                                                                                                
        3. Monthly or on Request..........................................................  $50.00 each request.
    c. Activity:                                                                                                
    b. Bookkeeping Positions:                                                                                   
        1. Daily..........................................................................  $150.00 per month.  
    d. Bookkeeping plus Activity:                                                                               
        1. Daily..........................................................................  $250.00 per month.  
        2. Weekly.........................................................................  $200.00 per month.  
    e. Cash Settlement (fee includes both dividends and reorganizations; transmissions are                      
     separate)                                                                                                  
        1. Daily..........................................................................  $100.00 per month.  
    f. Record Date Positions:                                                                                   
        1. Daily..........................................................................  $100.00 per month.  
    g. Status of Withdrawals by Transfer:                                                                       
        1. Daily..........................................................................  $100.00 per month.  
24. Philanet terminal:                                                                                          
    a. Dedicated Line.....................................................................  $250.00 per month.  
    b. Dial-up Line.......................................................................  $150.00 per month.  
    c. Installation.......................................................................  $600.00.            
    d. Usage..............................................................................  No charge.          
25. Position listings.....................................................................  $45.00--per         
                                                                                             individual request 
                                                                                             (per date, per     
                                                                                             CUSIP) (plus costs)
                                                                                            $360.00 annually--  
                                                                                             monthly basis (plus
                                                                                             costs).            
                                                                                            $1,300.00 annually--
                                                                                             weekly basis (plus 
                                                                                             costs).            
----------------------------------------------------------------------------------------------------------------
\1\ June 29, 1995 Board resolved amendments denoted--deletions bracketed, additions italicized.                 
*Transfer and deposit activity subject to pass-through costs.                                                   


[FR Doc. 95-18702 Filed 7-28-95; 8:45 am]
BILLING CODE 8010-01-M